It’s not quite a major changing of the guard just yet, but the changes, which took three years to implement, are meant to help taipan John Gokongwei’s empire survive the changing times.
When reporters asked Gokongwei’s only son Lance what would change now that he has been named president and CEO of JG Summit from president and COO previously, he said in jest it’s not the salary.
“Only the title,” the amiable Lance said with his trademark boy-next door-smile.
Turning serious, he said it was a transition that was three years in the making, with his uncle James Go steering the conglomerate to ensure a very orderly transition.
Lance formally announced the changes during the conglomerate’s annual stockholders’ meeting last Monday after the company disclosed the change in May.
Lance takes over the CEO role from his uncle James, previously chairman and CEO, who retains his role as chairman.
“It’s been a very organized transition with the chairman, effectively acting and working together to ensure a very orderly transition,” Lance explained.
With his new role as CEO, Lance will focus on four major areas – improving the companies’ competitive position; pursuing digitalization of the existing companies; stepping up sustainability efforts including environmental and good governance measures; and the last is maintaining a strong balance sheet.
Underlying all these efforts is the recruitment of fresh and good talent, he said.
For digitalization, the empire has assigned Lisa Gokongwei to pursue opportunities in this space and to the companies can benefit from the disruption, Lance said.
Lisa, whose Summit Media has been a casualty of digitalization, would surely know where to start.
Universal Robina Corp.
In a bold move, the Gokongwei family also appointed a non-family member to head Universal Robina Corp., replacing Lance as president and CEO.
Lance, who is now chairman of the multinational foods giant, said this would allow him to focus on JG Summit.
Thus, URC named 53-year-old Irwin Lee as president and CEO. Taipan John and his brother James are both chairman emeritus.
Lee was CEO of Rustan Supercenters Inc. at Dairy Farm International Holdings Ltd.
He also served as vice president and managing director of Procter & Gamble Northern Europe with responsibility for the UK, Ireland, Denmark, Finland, Norway and Sweden.
He has plenty of experience in the consumer goods industry, a deep understanding of the UK grocery market, and an excellent track record of leadership at one of Wm. Morrison largest suppliers, according to his Bloomberg profile.
Lance said putting non-family members in the business is not an issue, saying that they run the business in a very professional manner and that includes putting the best person for the job.
Risks
Lance is optimistic of the business environment, but noted risks. And there are plenty – rising interest rates, intense competition, inflation, and technological disruptions, among others.
“We recognize there are risks which we must consider as we run our businesses,” he said.
He cited for instance the recent passage of the Tax Reform for Acceleration and Inclusion (TRAIN) Act which had levied an increase in excise tax on sweetened beverages and petroleum products.
This, among other things, he said “elevates the cost base of conducting some of our operations.”
But I am sure that with Lance – who has learned a lot from his father – at the helm of JG Summit, the conglomerate would stay strong amid the changing times.
Congratulations and best of luck, Mr. CEO!
Tugade’s cable cars
A reader thinks Transportation Secretary Arthur Tugade’s proposal to put cable cars in Metro Manila is a “stubborn one.”
“We simply don’t have the money for it and no hope for a reasonable and sustainable ROI,” said the reader, a former overseas Filipino worker from the Middle East.
A cable car system can only accommodate hundreds compared to the millions of commuters and car owners causing the traffic, he added.
In terms of safety issues, especially in the Philippines, the cable cars cannot hover over a populated area of the metropolis.
“Just imagine the effect and ‘drama’ of even just a stalled cable car loaded with people over a populated area. What more if, OMG, it falls!,” the reader said.
On the other hand, if Tugade insists on his dream of cable cars, the reader said this should be limited to two areas.
“One is from Sucat along the Laguna lake shore going to Taguig, and the other one from Binangonan, Rizal also to Taguig. That could probably reduce the traffic on the congested SLEX on the west side and the hopelessly congested Manila East Road on the other side of the lake,” he said.
Hamad International Airport
When I wrote about my pleasant experience at the Hamad International Airport in Doha, Qatar, a reader said that while we don’t have such world-class airports in the country, the Doha gateway was actually built with the help of Filipino engineers and construction workers.
Wow. As the popular song goes, isn’t it ironic? I hope proponents seeking to develop our airports would also tap our engineers and skilled workers.
Iris Gonzales’ e-mail address is eyesgonzales@gmail.com